NPRA assures informal sector contributors of security of their funds
Mr Stanley Ogoe, Zonal Head of the National Pensions Regulatory Authority (NPRA) for Western, Central, and Western North Regions has assured the safety of members’ contributions on the Third Tier under the Third-Tier pension scheme.
He indicated that this was due to the pension Regulator’s continuous monitoring and supervision of the activities of the Trustees and other service providers in the management of the scheme.
He said the scheme provided a secure and regular source of income for contributors to retirement thereby making them financially independent as they would be relieved of the burden of being taken care of by the children or the family.
Mr Ogoe gave the assurance at a day’s sensitization exercise the NPRA organized for members of the informal sector in the Western Region on the new pension Act 766 on the theme, “Informal Sector Participation in the Tier 3 Pension Scheme”.
The exercise was part of the Authority’s mandate to engage stakeholders to enlighten them on the Three Tier Pension Scheme and sought their views to address their concerns to improve upon the Scheme, and as well let stakeholders including employees, employers, and the public abreast of the Three-Tier Pension Scheme.
Some of the concerns raised by participants included, security of the funds as contributed by members, identification and location of Trustees for the Fund, and the lack of knowledge on the amount deducted from the salaries of employees and contributors among others.
Addressing the concerns raised by participants, he bemoaned the situation where the public continued to invest with Ponzi schemes and unregulated fund managers despite the government’s warnings and said, “the security of their funds lies with them.”
He, therefore, implored participants to avoid fund managers who promised them a utopia without proper documentation and to seek information about such fund managers from the offices of the Authority.
Mr Ogoe emphasized that the Authority has put measures in place to check the security of the funds such as a member involvement in the management of the schemes, mandatory requirement for Trustees to issue contribution statements, and mandatory training and certification of Individuals Trustees.
He indicated that contributors of the pension schemes benefit from monthly pension payments on retirement, invalidity, and survivors benefits where a lump sum would be paid to the deceased person’s validity nominated beneficiaries and tax exemptions of up to 35 percent on their contributions.
He said contributors could transfer their accrued benefits from one scheme to another as they change employment, while members of the scheme could also use their future lump sum under the second tier to secure a mortgage for their primary residence.
Mr Ogoe announced that there has been an increase in the annuity period from 12 years to 15 years as well as a reduction of the qualifying contribution period from 20 years to 15 years under the scheme.
Source: GNA